“Appellant’s emergency motion for stay of the bond order is dismissed as moot,” the Third Circuit Court of Appeals today told Aurelius Capitol Management and other junior creditors in the Tribune Co. bankruptcy. The creditors were seeking to avoid having to put up a $1.5 billion bond in order to get a six-month stay of the media company’s restructuring and emergence from Chapter 11. Citing “lack of jurisdiction,” the three-judge panel said No in a two-page decision (read it here) to hearing an appeal on the August 27th denial of the creditors’ request to alter the bond order. Today’s decision leaves Aurelius with few options, unless they come up with the bond money immediately, to stop Tribune Co. moving forward out of bankruptcy under the ownership of senior creditors Oaktree Capitol Management, JPMorgan Chase and investment firm Angelo, Gordon & Co. However, Tribune’s progress will still be slow with or without a bond. The company has to get approval from the FCC to transfer the broadcast licenses on the 23 TV stations Tribune Co. owns to its new owners. Tribune Co. sought bankruptcy protection in December 2008, less than a year after real estate millionaire Sam Zell took over the company.
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